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DETERMINANTS OF RETURN ON ASSETS OF NON-FINANCIAL FIRM OF MALAYSIA |
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| รหัสดีโอไอ | |
| Creator | Hussain Tahir, Sarfraz Hussain, Anam Iqbal, Ejaz Aslam, Ridzuan Masri |
| Title | DETERMINANTS OF RETURN ON ASSETS OF NON-FINANCIAL FIRM OF MALAYSIA |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2563 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 11 |
| Journal No. | 11 |
| Page no. | 11A11K: 1-11 |
| Keyword | Financial leverage, Dividend payout policy, Board size, Board diversity, ROA, Fixed effect model, Random effect model, Leverage ratio. |
| URL Website | http://TuEngr.com/Vol11_11.html |
| Website title | ITJEMAST V11(11) 2020 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | To identify the determinants of return on assets of non-financial firms, and to examine how firms' different attributes affect the return on assets, this study uses a sample made up of 185 non-financial firms of Malaysia, covering the period 2005-2018. This paper uses ordinary least squire (OLS) and panel regression fixed effect, random effect model simultaneously. The results show the size of the board and board diversity exhibit insigni?cantly negative relationships with ROA in the Malaysian context, respectively. Financial leverage exhibit significant negatively in?uences the Malaysian non-financial ?rms. The dividend payout exhibit statistically signi?cant and positive relationship with ROA in Malaysian non-financial firms, respectively. It is clearly stated that high ROAs lead the way in making good financial gains in Malaysia. However, board diversity negatively affects the ROA in Malaysian non-financial firm context, because most firms are family-owned. High dividend payout policy increases the ratio of return on assets, high dividend ratio attracts the more investment that upsurges the firm's value and growth. The ?ndings of research have significant policy consequences. The research contributes to the return on assets literature by viewing at the position of return on assets and its determinants in selected non-financial firms of Malaysia. |
